MongoDB (MDB) Reports 30% Revenue Growth and 91% RPO Growth. Is Atlas Demand Durable Enough to Sustain Operating Leverage?

MongoDB, Inc. (NASDAQ: MDB ) reported fiscal second-quarter revenue of $771.8 million, up 30% year over year. Atlas revenue increased approximately 29% to $565.9 million, while Enterprise Advanced and other revenue rose approximately 36% to $181.2 million.

Remaining performance obligations, or RPO, increased 91% to $1.52 billion. RPO represents the aggregate transaction price in contracts allocated to performance obligations not delivered or partially undelivered. MongoDB, Inc. (NASDAQ:MDB) omits contracts lasting 12 months or less from the disclosure. Current RPO, the portion expected to be recognized within 12 months, increased 73% to $797.3 million.

GAAP operating income reached $28.4 million, compared with a $65.3 million loss a year earlier. MongoDB, Inc. (NASDAQ:MDB) also raised fiscal 2027 revenue guidance to $2.99 billion to $3.03 billion from $2.92 billion to $2.96 billion, with the second-half increase attributed mainly to Atlas.

Growth was broad. Atlas expanded 29%, while Enterprise Advanced and other revenue grew faster at 36%. Total customers increased to more than 70,600 from more than 59,900 a year earlier, and Atlas customers reached more than 69,300.

The margin profile also improved. GAAP gross margin expanded to 74% from 71%, while revenue growth outpaced operating-expense growth enough to produce positive GAAP operating income. This shows MongoDB, Inc. (NASDAQ:MDB) can scale infrastructure, research and sales costs more slowly than revenue.

Free cash flow, a company-defined non-GAAP measure, nearly doubled to $137.6 million from $69.9 million. MongoDB, Inc. (NASDAQ:MDB) defines free cash flow as operating cash flow less capital expenditures, principal payments on finance leases and capitalized software-development costs, if any. Operating cash flow was $141.9 million, while capital expenditures and finance-lease principal payments totaled $4.3 million.

MongoDB, Inc. (NASDAQ:MDB) expanded search and vector-search capabilities across cloud, private-cloud, and self-managed environments, while adding tools that connect coding agents to operational data. These capabilities could expand workloads across Atlas and Enterprise Advanced, although MongoDB, Inc. (NASDAQ:MDB) did not quantify their revenue contribution.

RPO growth does not confirm Atlas demand because MongoDB, Inc. (NASDAQ:MDB) did not disclose how much of RPO related specifically to Atlas. Based on the reported first-quarter balances, RPO and current RPO each increased only about 4% quarter over quarter. Contract duration and renewal timing can make these balances uneven, and RPO growth does not guarantee matching revenue growth in the same period.